Correlation Between Sangsin Energy and Woori Financial
Can any of the company-specific risk be diversified away by investing in both Sangsin Energy and Woori Financial at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Sangsin Energy and Woori Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sangsin Energy Display and Woori Financial Group, you can compare the effects of market volatilities on Sangsin Energy and Woori Financial and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Sangsin Energy with a short position of Woori Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sangsin Energy and Woori Financial.
Diversification Opportunities for Sangsin Energy and Woori Financial
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Sangsin and Woori is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Sangsin Energy Display and Woori Financial Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Woori Financial Group and Sangsin Energy is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Sangsin Energy Display are associated (or correlated) with Woori Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Woori Financial Group has no effect on the direction of Sangsin Energy i.e., Sangsin Energy and Woori Financial go up and down completely randomly.
Pair Corralation between Sangsin Energy and Woori Financial
Assuming the 90 days trading horizon Sangsin Energy Display is expected to generate 4.33 times more return on investment than Woori Financial. However, Sangsin Energy is 4.33 times more volatile than Woori Financial Group. It trades about 0.04 of its potential returns per unit of risk. Woori Financial Group is currently generating about 0.03 per unit of risk. If you would invest 765,552 in Sangsin Energy Display on October 25, 2024 and sell it today you would earn a total of 10,448 from holding Sangsin Energy Display or generate 1.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sangsin Energy Display vs. Woori Financial Group
Performance |
| Timeline |
| Sangsin Energy Display |
| Woori Financial Group |
Sangsin Energy and Woori Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sangsin Energy and Woori Financial
The main advantage of trading using opposite Sangsin Energy and Woori Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sangsin Energy position performs unexpectedly, Woori Financial can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Woori Financial will offset losses from the drop in Woori Financial's long position.| Sangsin Energy vs. SeAH Besteel Corp | Sangsin Energy vs. Insun Environment New | Sangsin Energy vs. PlayD Co | Sangsin Energy vs. Aprogen Healthcare Games |
| Woori Financial vs. Shinhan Financial Group | Woori Financial vs. Hana Financial | Woori Financial vs. KakaoBank Corp | Woori Financial vs. Industrial Bank |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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